Picatinny Relationship RewardsRewarding Members For A Full Relationship It’s here! Introducing Picatinny Relationship Rewards. Let’s start your New Year off on the right foot

with free services, discounts on loans and bonus rates on your savings. There is no better way to

kick-start your 2011 financial plan.

At Picatinny, we appreciate and value all of our members. So we designed a program that had

something for everyone. We built this program with four relationship levels: Valued, Preferred,

Premier and Platinum. Based on your combined savings, checking and loan balances, you will be

automatically enrolled into a rewards tier and start earning free benefits. It’s as easy as that. No forms

to fill out or annual fees.

We strive to provide you with exceptional service, great rates and affordable loans. Now we’re

making it even easier for you to experience greater savings and benefits with Relationship Rewards.

Looking to climb up the ladder of rewards? Just sign up for direct deposit, activate your debit card or

transfer your loans and deposits from other financial institutions to Picatinny.

Watch your mail for more information and a Relationship Rewards Brochure that will provide all

the details of the program.

In addition, please feel free to stop by one of our branch offices and speak to a Member

Services Representative about your free services and benefits. Or visit us at

www.picacreditunion.com.

IN THIS EDITION:

Page 2

Buy A Car Without Getting Taken For A Ride

*The 0%

Financing Craze

Page 3

Retire Comfortably

*2010 Giving

Thanks Collection

Page 4

Open Your IRA Today

*Holiday Schedule

wINTER ISSuE 2011

Buy A Car without Getting Taken For A RidePurchasing a car does not have to be difficult or stressful. Picatinny Federal Credit Union can help you save time, money and effort with

Motor Vehicle Certification Program (MVCP), our FREE car-buying service for members. MVCP can supply you with all the information

you need prior to visiting the dealership. You will receive a pre-negotiated price, the price the dealer paid for the car and all rebates and

incentives available. The MVCP team of advisors will answer your questions and walk you through the entire buying process.

If you’re in the market for a new or used car, call MVCP at (800) 345-0990 to get the process started.

The 0% Financing Craze. Is It A Good Deal?At Picatinny, You Can Do Better!

When purchasing a new vehicle you face

many choices. The most difficult is often

financing. However, you have options!

It has been commonplace in the

automotive industry to offer special

rebates. We are bombarded with television

commercials from auto dealers offering us

0% auto loan rates. Sounds good, right?

The answer is a definite maybe. In many

cases, the average auto buyer won’t be

offered those special rates. And even if

you can qualify, you can often do better

by taking the cash rebate and financing at

Picatinny Federal Credit Union. If we can’t

beat it, we’ll tell you.

who Gets The Special Rates?According to a Consumer Task Force for

Automotive Issues survey, less than 10 people

out of 100 who financed at the dealership got

zero percent rates. Such rates are used to entice

you to go to the dealership, but few consumers

actually get them.

Why didn’t they get it? Since the dealerships

make no money on this rate, they generally do

their best to switch people to higher rates. How

do they do that? “Oh, you don’t qualify for

that rate. Uh, and that rate doesn’t cover that

specific vehicle.” Who determines who qualifies?

The dealerships. Who determines if the vehicle

actually qualifies for the rate? The dealerships.

If you look at the fine print on recent

0% offers, you’ll see such language

as this...

n For qualified buyers

n For well-qualified buyers

n Residency and other restrictions may apply

n Most buyers will not receive this special rate

n Not available in all areas

n Not available on these models

n See dealer for details

These disclaimers give dealers a way to

steer you away from the special offer

into something more lucrative for them.

what Saves You The Most Money?In most cases, take the rebate and

finance your auto loan with Picatinny’s

low rates. As you can tell from the

example, we’re able to save members

money over dealer financing - often

even when zero percent financing is

offered.

To make sure you’re choosing the

best financing option call our Loan

Department at (877) 742-6849 and

ask about being pre-approved.

* APR = Annual Percentage Rate. PFCU new auto loan rates are based on your personal credit history and are subject to change.

Can You Do Better Than Zero Percent?

If a rebate is offered as an alternative to 0%, the answer is often yes! To do so, you’ll

need to apply the rebate as a down payment on the vehicle. Look at the two examples

below with a $3,000 rebate. Based on PFCU’S current auto rate, you can do better.

See for yourself...

Example: Loan Term: 36 months

Sales Price $15,000 $20,000

Interest Rates 0% 3.25 APR%* 0% 3.25 APR%*

Manufacturers rebate $0 $3,000 $0 $3,000

Amount to finance $15,000 $12,000 $20,000 $17,000

3-Year total Interest Paid $610.42 $864.73

Total Payments of $15,000 $12,610.42 $20,000 $17,864.73

PFCU financing with a dealer rebate saves...

$2,389.58 $2,135.27

2010 Giving Thanks CollectionPicatinny Federal Credit union Is Proud To Support Our Local CommunityCynthia Lounsberry, PFCU Administrative Assistant

(left) and Kathy Coppinger, Branch Sales Manager

(right) standing in the lobby of the Rockaway office,

gathering food for area food banks. The 2010 Giving

Thanks Program collected donations for Mt. Olive,

Rockaway Township and Rockaway Borough

Community Food Banks. The 2010 food

drive provided food for the holidays and

helped restock the Food Closet’s pantry

for future needs. The food drive

was supported by credit union

members and employees.

Thank you for your support and generosity!

Paring Back So You Can Retire Comfortably

Planning on putting off retirement? You’re not

alone. About 70% of current workers plan to

work for pay in retirement, up from a recent low

of 63% in 2008. (Employee Benefit Research

Institute’s 2010 annual retirement confidence

survey)

Although some retirees simply like staying active,

most haven’t yet managed to recoup the savings

they lost during the most recent stock market

crash. But that doesn’t mean putting off retirement or getting a job.

With a few budgetary cutbacks and some decisive money moves, you can

improve your future retirement outlook. What’s more, doing so can also help

you gauge how realistic your assumptions are. Nothing would be worse than

taking the leap before realizing you can’t live on less.

Here are some ways to trim your expenses so you can boost your nest egg.

Trim Housing CostsConsider trading down to a smaller home. Doing so can not only allow you to

stash your gains into a retirement savings account, it can also help shrink your

taxes, utility bills and home maintenance costs.

Eliminate Pricey DebtsAlthough some debt such as a mortgage and student loans can offer valuable

tax deductions, other debts are just plain worthless. Before you can even begin

to save, you have to eliminate high priced debts such as credit cards or payday

loans.

Drain Your Savings AccountHaving cash set aside in a liquid, easily accessible account is ideal as

emergencies do happen. However, many advisors were recommending clients

keep two years worth of income on hand. Even though the job market is still

uncertain, having just 6 to 12 months’ worth of savings should suffice. If you

do have a stockpile of money in a savings account, you might want to get

greater returns in longer-term accounts.

Keep Your Priorities StraightMany parents want to help their kids financially so they can avoid huge debt.

However these days, cutting back on that kind of generosity may be necessary.

Many advisors suggest that saving for your retirement should be your number

one priority and number two is saving for college. (www.smartmoney.com/

personal-finance, Nov 2010)

Your Board Of DirectorsChairman Joe ShiposhVice-Chair Nancy Mueller-DavisTreasurer Jay DeckerAssistant Treasurer Mark SauvageauSecretary Joe CarrollDirector George CherenackDirector Scott ShupeDirector Valerie MorganDirector Sue CoppolaDirector David LeeDirector Kim JonesAssociate Director Gary Caltabilotta

Supervisory Committee

Chairman Lou HassellCommittee Member Kim Jones

Committee Member Dominick Moreo

Committee Member Ismael Ruiz

Credit Committee

Chairperson Mary Lou KenisonCommittee Member Sue CoppolaCommittee Member Frank CauteroCommittee Member Rosario LocascioCommittee Member Andrew HarderCommittee Member M. David Ahmad

Committee Member Gordon Winch

President & CEO Bill Darling

Locations & HoursRockaway Branch

100 Mineral Springs Drive Dover, New Jersey 07801

Phone: (973) 361-5225

Mon. and Thurs.: 8:00 a.m. - 6:00 p.m.

Tues., Wed., Fri.: 8:00 a.m. - 3:30 p.m.

Sat.: 9:00 a.m. - Noon

ATM

Arsenal Branch (restricted access)

ARDEC Building 30 South Picatinny Arsenal, New Jersey 07806

Phone: (973) 989-2612

Mon. - Wed., Fri.: 8:00 a.m. - 3:30 p.m.

Thurs.: 8:00 a.m. - 6:00 p.m.

ATM

Mt. Olive Branch

10 International Drive South Flanders, New Jersey 07836

Phone: (973) 691-6400

Mon. - Wed., Fri.: 8:00 a.m. - 3:30 p.m.

Thurs.: 8:00 a.m. - 6:00 p.m.

Sat.: 9:00 a.m. - Noon

ATM

Drive-Up:

Mon. - Fri.: 8:00 a.m. - 5:00 p.m.

Thurs.: 8:00 a.m. - 6:00 p.m.

Sat.: 9:00 a.m. - Noon

Website: www.picacreditunion.com

00798

Your shares are federally insured to at least $250,000 by the NCUA National Credit Union Administration – a U.S. Government Agency

Your retirement share accounts are insured up to $250,000 (aggregate) by the NCUA.

The Picatinny Federal Credit Union Digest is published quarterly by the Picatinny Federal Credit Union – Karen Morano, Editor

Comments? Please write to:

The Supervisory Committee of Picatinny Federal Credit Union P.O. Box 414, Wharton, New Jersey 07885

Martin Luther King Jr.’s Birthday Monday, January 17, 2011

Presidents’ Day Monday, February 21, 2011

Branch Office – Holiday Closings

Open Your IRA Todayn The Deadline For Making 2010

Contributions Is April 15, 2011

n Retirement Share Accounts Are Insured

Up To $250,000 By The National

Credit Union Administration

Call For The Most Current

IRA Certificate Rates!

(973) 361-5225

Find A Surcharge-Free ATM Near YouPicatinny Federal Credit Union and Allpoint have

partnered together to give you 24/7 surcharge-free

access to your money!

To find an Allpoint ATM near you, visit

www.picacreditunion.com and type your

zip code in the ATM search box.

Some ATMs may display a surcharge screen during your transaction. Simply enter “yes” to accept the surcharge and proceed with your withdrawal. You will not be charged a fee.

Attention Members!We have VISA® Gift Cards…the perfect

gift for birthdays, weddings or any other

special occasion! Visit any branch to

purchase your Gift Card today. They’re

available in any amount – from $10 to $1,000.